SUMMARY--Requires local government to specify permissible payees that debtor may name on check intended as payment to local government. (BDR 31-382)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to local governmental administration; requiring a local government to specify the permissible payees that debtors of the local government may name on a check or other negotiable instrument intended as payment to the local government; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 354 of NRS is hereby amended by adding thereto a new section to read as follows:
1. All invoices or other notices issued by a local government to collect an account receivable must state that if the debtor wishes to pay by check or other negotiable instrument, such negotiable instrument must name as payee:
(a) The local government; or
(b) The title of the governmental official charged by law with the collection of such accounts.
In no event may the invoice or other notice state that a check or other negotiable instrument may name a natural person as payee.
2. Notwithstanding the provisions of subsection 1, a local government may deposit into the appropriate account a check or other negotiable instrument which it determines is intended as payment for an account receivable.
3. As used in this section, "local government" means every political subdivision or other entity which has the right to levy or receive money from ad valorem taxes or other taxes or from any mandatory assessments, including, without limitation, counties, cities, towns, boards, authorities, school districts and other districts organized pursuant to chapters 244, 244A, 309, 318, 379, 439, 450, 473, 474, 539, 541, 543 and 555 of NRS.